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Value Delivery Network

Value delivery network is a set of connections in an organization that associates with distributors and specific suppliers in the process of manufacturing goods and their transporting to the marketplace. Materials or finished goods are delivered to the market distributor, who serves the customer market or directly the customer.

It is a competitive advantage, which includes customers, distributors, and suppliers. Thus, this network involves all direct manufacturing participants of the goods production process, marketing, service, installation, and delivery to particular geographic and demographic markets. These members are the raw material suppliers, manufacturers, processors, wholesalers, retailers, and distributors.

Value delivery network is significant for company’s existence since it aids in building stable and profitable relationships.

The benefits of assimilating and coordinating value delivery network are obvious. It establishes partnering with allied companions and frequently leads to lower cost production through using retrieval of overhead costs, free cash flows, which are accessible for technology and research. Associations with value-chain members often result in reduced transaction costs over influential leverage in supply negotiations. An organization is provided with real time information. Hence, it is able to service JIT-manufacturing practices and improve inventory management for more precise equality of supply and demand (Baker & Hart, 2007).

Value delivery network is one of organizational strengths, which enables an organization to compete more efficiently and improve the performance of its whole system. Strategic marketing and business plan is the central issue of every extremely effective value delivery network. It provides course for the internal organizational departments, such as accounting, finance, operations, purchasing, human resources, and information systems, as well as for external partners.

A Strategic Marketing Plan must recommend segments of the value chain, where an organization should take part in maximization of value creation. It also must follow a wide-ranging value delivery audit. A Strategic Marketing Plan is especially vital in joining the interests and objectives of a company with its main partners, increasing leverage in forthcoming partnering relationships. Therefore, it optimizes the efficiency of the entire value delivery network.

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